Question...
Our client purchased a contract works insurance policy for a 12-month period to cover some major alterations they were doing in their home. Included in the contract works policy was cover for the existing structure. The home was also fully insured during that time with the same insurer under a domestic home policy. During the period of construction, the contractor covered the client's carpets in a film designed to protect the carpet. Once the construction was completed the film was removed but the glue from the film had stuck to the carpet which cannot be removed. The carpet needs to be replaced.
The manufacturer of the film advised that the wrong type of film was used as it was recommended for use only on synthetic carpets, not pure wool carpets as our client has.
The insurance company has advised that neither the contract works or home policies would respond to the claim as the builder has used an incorrect product to protect the carpet, which they said would be classed as faulty workmanship. As the carpet did not form part of the scope of works, I am not sure that the faulty workmanship exclusion would apply in this case. Any thoughts on this?
Reply: Crossley Gates
The carpet is potentially covered under both policies as the house policy was still in force and the contract works policy also covered the existing structures (the carpet). Contract works policies do normally have an exclusion for faulty workmanship, with a write back for resultant damage (damage beyond that initially caused by the faulty workmanship). The damage to the carpet does appear to have been caused by faulty workmanship and it is the initial damage, not resultant damage. However, is the damage covered under the house policy? That damage is not to the contract works but rather to existing property that was being protected during the contract works?